I have exactly the same Problem! Please help us!
If you have not already update 12 to 12.1 Update using an opened project's Help Menu/Update, then please do so when the opportunity arises with the use of just the Intel driver.
1. With Intel and "displaylink driver", Premiere Elements 12 would not open, and you get the Display Card error message. Does the message specify by name which driver it is referring to?
2. So, you remove the "displaylink driver" and go with just the Intel driver. Premiere Elements 12 now starts.
Under those conditions, is the Display Card error gone?
3. Then you say
I then updated the displaylink driver but this did not fix the issue
What issue - display card error and/or Premiere Elements 12 will not start or something else like "connect the Lenovo Dock to the USB3 on the laptop"/
Depending on the reply to the above, we might want to try deleting the Premiere Elements 12/12.1 BadDrivers.txt file.
In Windows 7, 8, or 8.1 64 bit, it is found
Local Disc C
and in the Premiere Elements Folder is the standalone BadDrivers.txt file that you delete. You do not want anything in one of the folders in the Premiere Elements Folder. Just that BadDrivers.txt file in the Premiere Elements Folder.
Just that "BadDrivers.text" as seen in the screenshot is all you want to delete. Ignore "CurrentDisplayDriver.txt"
that you see in the screenshot. It was present when I had Premiere Elements 13 installed.
We will be watching for further developments.